Cross-Breeding: A Novel Look at Line Extensions

By Tom Ryan

The Nike+ iPod Sport Kit, www.apple.com

While overextending a brand across categories is often seen as a universal 'no no', two marketing professors believe companies should be actively seeking to extend brands into dissimilar or even highly remote product categories. Classic examples of this "cross breeding" are the sofa-bed, fax-phone, and fridge-freezer, but technological advancements are opening up more combos such as the cell phone/camera as well as the Nike+ iPod running shoe.

Writing in The Wall Street Journal, Michael Gibbert, from Bocconi University in Milan, and David Mazursky, from Hebrew University in Jerusalem, said brand managers don't typically explore such combinations based on the belief that companies should stay within established product lines to avoid diluting a brand's identity.

The problem, according to the professors, is that the "don't overextend mindset" often leads to "inbreeding." In these cases, features of one product are combined with those of a related product to an excessive degree. An example would be cell phones, organizers and computers all clumsily sharing each other's features.

"Since they believe that each additional feature represents a point of differentiation from the competition, managers find it hard to step off this never-ending treadmill," the professors wrote. "Paradoxically, in an attempt to not overextend the product line, managers overextend the product's features, leading to 'feature glut' and reduced usability for consumers."

On the other side, cross-breeds "can revolutionize their parent categories and can even create new categories."

Other examples of recent cross-breeds include a radio toaster, a fridge-TV, a pocket knife with a USB storage drive, and a cell phone with a built-in glucose meter for diabetics.

In coming up with these hybrid combinations, the professors believe brand managers should probe a few key questions:

• What other main product is involved in your product's usage, and how can the two can be beneficially combined?
• How might a critical function in one product serve a modified purpose when linked to another product?
• How can we create links and dependencies between functions of two remote products where before there were none?

For example, Nike+ iPod had an obvious linkage since people like running with their iPods. But when hooked to a Nike+ running shoe, the iPod nano screen, which normally displayed music information, displays the distance, pace, and calories burned. Results can be synched back to a computer to track progress. Users can also download playlists tailored to their run, and even click a "power song," a personal favorite that can help summon up a burst of energy.

Discussion Question: Do you agree that a "don't overextend mindset" is causing branding managers to miss "cross breeding" opportunities? Is this an opportunity for a large number of products or a select few? What are some essential guidelines in determining whether a hybrid combination might work or is indeed overextending?

• A Recipe for Creating New Products - The Wall Street Journal